Social Security Reform

Abstract

Although officially off the table during the recent Presidential campaign, Social Security finances are very much in the news these days. Any discussion of Federal budget balance raises the topic, because Social Security expenditures are the largest item in the Federal budget. This paper discusses the size and timing of the Social Security funding problem, and asks whether there is a Social Security crisis and whether Social Security can be rescued without radical reform. The options proposed by the President's Social Security Advisory Board are then reviewed, followed by a discussion of some pros and cons of partial privatization, the most controversial component of the reform plans. Keywords: Social Security